35808 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

Treasury has reviewed the three state

enactments and has concluded all of

them are substantially identical to the

uniform version of Revised Article 8.

We note that in 1997 Connecticut

adopted a version of Revised Article 8

upon which Treasury did not issue a

determination (see 62 FR 61913,

November 20, 1997).

That law was repealed and replaced

with the 1998 Connecticut adoption of

Revised Article 8, to which this notice

applies.

Accordingly, if either § 357.10(b) or

§ 357.11(b) directs a person to Georgia,

Florida and Connecticut, the provisions

of §§ 357.10(c) and 357.11(d) of the

TRADES rule are not applicable.

Dated: June 25, 1998.

Van Zeck,

Commissioner of the Public Debt.

[FR Doc. 98–17474 Filed 6–26–98; 5:03 pm]

BILLING CODE 4810–39–P

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 501, 515 and 560

Cuban Assets Control Regulations;

Iranian Transactions Regulations;

Reporting and Procedures

Regulations: Corrections

AGENCY: Office of Foreign Assets

Control, Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains

corrections to final regulations

amending the Cuban Assets Control

Regulations, published May 18, 1998

(63 FR 27349), the Iranian Transactions

Regulations, published on August 4,

1997 (62 FR 41851), and to the issuance

of the Reporting and Procedures

Regulations, published on August 25,

1997 (62 FR 45098). The regulations

related to the prohibitions on travel–

related transactions in Cuba, the

payment of awards and settlements

relating to the Iran–U.S. Claims

Tribunal in The Hague, and to the

consolidation and standardization of

information collection provisions

administered by the Office of Foreign

Assets Control.

EFFECTIVE DATE: June 26, 1998.

FOR FURTHER INFORMATION CONTACT:

Steven I. Pinter, Chief of Licensing (tel.:

202/622–2480), David H. Harmon, Chief

of Enforcement (tel.: 202/622–2430), or

William B. Hoffman, Chief Counsel (tel.:

202/622–2410), Office of Foreign Assets

Control, Department of the Treasury,

Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic Availability

This document is available as an

electronic file on The Federal Bulletin

Board the day of publication in the

Federal Register. By modem, dial 202/

512–1387 and type ‘‘/GO FAC,’’ or call

202/512–1530 for disk or paper copies.

This file is available for downloading

without charge in WordPerfect 5.1,

ASCII, and Adobe AcrobatR readable

(*.PDF) formats. For Internet access, the

address for use with the World Wide

Web (Home Page), Telnet, or FTP

protocol is: fedbbs.access.gpo.gov. The

document is also accessible for

downloading in ASCII format without

charge from Treasury’s Electronic

Library (‘‘TEL’’) in the ‘‘Business, Trade

and Labor Mall’’ of the FedWorld

bulletin board. By modem, dial 703/

321–3339, and select self–expanding file

‘‘T11FR00.EXE’’ in TEL. For Internet

access, use one of the following

protocols: Telnet = fedworld.gov

(192.239.93.3); World Wide Web (Home

Page) = http://www.fedworld.gov; FTP

= ftp.fedworld.gov (192.239.92.205).

Additional information concerning the

programs of the Office of Foreign Assets

Control is available for downloading

from the Office’s Internet Home Page:

http://www.ustreas.gov/treasury/

services/fac/fac.html, or in fax form

through the Office’s 24–hour fax–on–

demand service: call 202/622–0077

using a fax machine, fax modem, or

(within the United States) a touch–tone

telephone.

Background

The final regulations that are the

subject of these corrections amended the

Cuban Assets Control Regulations, 31

CFR part 515 (the ‘‘CACR’’), the Iranian

Transactions Regulations, 31 CFR part

560 (the ‘‘ITR’’), and the Reporting and

Procedures Regulations, 31 CFR part

501 (the ‘‘RPR’’).

The CACR were amended to indicate

the existence of a presumption that

persons subject to U.S. jurisdiction who

have traveled to Cuba without the

authority of a general or specific license

have necessarily engaged in prohibited

travel–related transactions. This

presumption is subject to rebuttal upon

presentation of a statement, signed by

the traveler and accompanied by

appropriate supporting documentation,

that (1) no transactions were entered

into, or (2) the travel was fully hosted

by a person or persons not subject to the

jurisdiction of the United States and

was not in exchange for services

provided in Cuba or elsewhere. The ITR were amended to authorize

by general license the payment of

awards against Iran issued by the Iran–

U.S. Claims Tribunal in The Hague, and

implementation (other that certain

exports and reexports) and payment of

awards and settlements to which the

United States Government is a party.

The final rule also authorized by general

license the provision of certain legal

services to the Government of Iran and

persons in Iran.

Finally, the RPR consolidated and

standardized in a single part common

provisions on collections of information

and procedures in existing regulations

administered by the Office of Foreign

Assets Control. This final rule included

an initial and annual requirement to

report on blocked assets or retained

funds transfers — as well as periodic

reports on funds transfers rejected by

U.S. financial institutions — for

administrative and foreign policy

formulation purposes. The rule also

required reports on U.S. litigation and

other dispute resolution proceedings

where the proceedings may affect

blocked assets or funds retained by

banks that have stopped violative

transfers. In addition, new procedures

were set forth for persons seeking the

unblocking of funds they believe have

been blocked due to mistaken identity,

or seeking administrative review of their

designation or that of a vessel as

blocked. In addition, the reporting

requirements and licensing and other

procedures of the new part are made

applicable to transactions that have

become subject to economic sanctions

programs for which implementation and

administration are delegated to the

Office of Foreign Assets Control.

Need for Correction

As published, the final regulations

contain errors which may prove to be

misleading and are in need of

clarification.

Correction of Publication

Accordingly, the final regulations are

corrected as follows:

1. The publication on May 18, 1998,

which was the subject of FR Doc. 98–

13120 amending the Cuban Assets

Control Regulations, is corrected as

follows. On page 27351, in the second

column, amendatory instruction 2 is

corrected to read: ‘‘2. Paragraph (g) of

§ 515.560 is revised to read as follows:’’.

2. The publication on August 4, 1997,

which was the subject of FR Doc. 97–

20447 amending the Iranian

Transactions Regulations, is corrected as

follows. On page 41852 in the third

column, amendatory instruction 3 is

corrected to read: ‘‘3. The introductory

text of paragraph (a) and paragraphs

(a)(3) and (a)(5)(i) of § 560.525 are

revised to read as follows:’’.
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35809

3. The publication of August 25, 1997,

which was the subject of FR Doc. 97–

22378 issuing the Reporting and

Procedures Regulations, is corrected as

follows. On page 45104 in the third

column, § 501.803 is corrected to read as

follows:

§ 501.803 Amendment, modification, or

revocation.

Except as otherwise provided by law,

the provisions of each part of this

chapter and any rulings, licenses

(whether general or specific),

authorizations, instructions, orders, or

forms issued thereunder may be

amended, modified or revoked at any

time.

Dated: June 26, 1998.

R. Richard Newcomb,

Director, Office of Foreign Assets Control.

Approved: June 26, 1998.

Elisabeth Bresse,

Acting Assistant Secretary (Enforcement).

[FR Doc. 98–17539 Filed 6–30–98; 4:04 pm]

BILLING CODE 4810–25–F

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 538

Sudanese Sanctions Regulations

AGENCY: Office of Foreign Assets

Control, Department of the Treasury.

ACTION: Final rule.

SUMMARY: The Office of Foreign Assets

Control of the U.S. Department of the

Treasury is issuing the Sudanese

Sanctions Regulations to implement the

President’s declaration of a national

emergency and imposition of sanctions

against Sudan.

EFFECTIVE DATE: July 1, 1998.

FOR FURTHER INFORMATION CONTACT:

Steven I. Pinter, Chief of Licensing (tel.:

202/622–2480), or William B. Hoffman,

Chief Counsel (tel.: 202/622–2410),

Office of Foreign Assets Control,

Department of the Treasury,

Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic Availability

This document is available as an

electronic file on The Federal Bulletin

Board the day of publication in the

Federal Register. By modem, dial 202/

515–1387 and type ‘‘/GO FAC,’’ or call

202/512–1530 for disk or paper copies.

This file is available for downloading

without charge in WordPerfect 5.1,

ASCII, and Adobe AcrobatR readable

(*.PDF) formats. For Internet access, the

address for use with the World Wide

Web (Home Page), Telnet, or FTP

protocol is: fedbbs.access.gpo.gov. The

document is also accessible for

downloading in ASCII format without

charge from Treasury’s Electronic

Library (‘‘TEL’’) in the ‘‘Business, Trade

and Labor Mall’’ of the FedWorld

bulletin board. By modem, dial 703/

321–3339, and select self–expanding file

‘‘T11FR00.EXE’’ in TEL. For Internet

access, use one of the following

protocols: Telnet = fedworld.gov

(192.239.93.3); World Wide Web (Home

Page) = http://www.fedworld.gov; FTP

= ftp.fedworld.gov (192.239.92.205).

Additional information concerning the

programs of the Office of Foreign Assets

Control is available for downloading

from the Office’s Internet Home Page:

http://www.ustreas.gov/treasury

services/fac/fac.html, or in fax form

through the Office’s 24–hour fax–on–

demand service: call 202/622–0077

using a fax machine, fax modem, or

(within the United States) a touch–tone

telephone.

Background

On November 3, 1997, the President

issued Executive Order 13067 (62 FR

59989, Nov. 5, 1997), declaring a

national emergency with respect to ‘‘the

policies and actions of the Government

of Sudan,’’ and invoking the authority,

inter alia, of the International

Emergency Economic Powers Act (50

U.S.C. 1701–1706). The order blocks all

property and interests in property of the

Government of Sudan, its agencies,

instrumentalities, and controlled

entities, including the Central Bank of

Sudan, that are in the United States, that

are or hereafter come within the United

States, or that are or hereafter come

within the possession or control of U.S.

persons, including their overseas

branches; and orders other specific

sanctions against Sudan. The order also

authorizes the Secretary of the Treasury,

in consultation with the Secretary of

State and, as appropriate, other

agencies, to take such actions, including

the promulgation of rules and

regulations, as may be necessary to carry

out the purposes of the order. In

implementation of the order, the

Treasury Department is issuing the

Sudanese Sanctions Regulations (the

‘‘Regulations’’).

Section 538.201 of the Regulations,

implementing section 1 of Executive

Order 13067 (the ‘‘Executive Order’’),

blocks all property and interests in

property of the Government of Sudan,

its agencies, instrumentalities, and

controlled entities, including the

Central Bank of Sudan, that are in the

United States, that hereafter come

within the United States, or that are or

hereafter come within the possession or

control of U.S. persons, including their

overseas branches. As interpreted by

§ 538.305 of the Regulations, § 538.201

also blocks all property and interests in

property of persons determined by the

Secretary of the Treasury, in

consultation with the Secretary of State,

to be owned or controlled by, or to be

acting on behalf of, the Government of

Sudan. Persons coming within any of

these categories are called specially

designated nationals (‘‘SDNs’’). Section

538.204 of the Regulations,

implementing section 2(a) of the

Executive Order, generally prohibits the

importation into the United States of

goods or services of Sudanese origin.

Section 538.205 of the Regulations,

implementing section 2(b) of the

Executive Order, generally prohibits the

exportation or reexportation to Sudan of

goods, technology or services from the

United States, by a U.S. person, or

requiring the issuance of a license by a

Federal agency. Section 538.206 of the

Regulations, implementing section 2(c)

of the Executive Order, prohibits the

facilitation by a U.S. person of the

exportation or reexportation of goods,

technology or services to or from Sudan.

Section 538.207 of the Regulations,

implementing section 2(d) of the

Executive Order, prohibits the

performance by any U.S. person of any

contract, including a financing contract,

in support of an industrial, commercial,

public utility, or governmental project

in Sudan. Section 538.208 of the

Regulations, implementing section 2(e)

of the Executive Order, prohibits the

grant or extension of credits or loans by

any U.S. person to the Government of

Sudan. Section 538.209 of the

Regulations, implementing section 2(f)

of the Executive Order, prohibits

transactions relating to the

transportation of cargo to or from

Sudan. Pursuant to section 3 of the

Executive Order, § 538.211 of the

Regulations exempts certain

transactions from the prohibitions of the

Executive Order and Regulations.

Transactions otherwise prohibited

under this part but found to be

consistent with U.S. policy may be

authorized by a general license

contained in subpart E or by a specific

license issued pursuant to the

procedures described in subpart D of

part 501 of 31 CFR chapter V. Penalties

for violations of the Regulations are

described in subpart G of the

Regulations.

Since the Regulations involve a

foreign affairs function, the provisions

of Executive Order 12866 and the

Administrative Procedure Act (5 U.S.C.

553)(the ‘‘APA’’) requiring notice of

proposed rulemaking, opportunity for